The price of Solana (SOL) soared to $143.50 on April 2 after an incredible gain of 82% in 20 days. This positive development is due to recent news related to the NFT market and a recovery in the market as a whole. Therefore, the current decline of 22.7% could confuse investors.
The rally started when Coinbase Wallet announced on March 18 that it now supports SOL and other Solana-based blockchain tokens. The crypto exchange also said it is planning “further integration” with Solana. Coinbase Wallet will be connected to decentralized applications (DApps) and NFTs hosted on the network.
The integration of the Solana OpenSea network is also generating enthusiasm among investors. This means that Solana is now also offered as a payment option on OpenSea in the drop-down menu alongside Ethereum, Polygon and Klaytn.
Solana’s strategy of focusing on NFT markets appears to have paid off, as the layer-1 blockchain network rose to number three in NFT sales on April 6. Additionally, the most recent data for the past 30 days shows that Solana has made over $216 million in NFT sales.
Solana DApp deposits down
Solana’s leading Decentralized Applications (DApp) indicator began to weaken in late March after the network’s Total Value Locked (TVL) fell below SOL50 million.
The chart above shows that Solana’s DApp deposits fell 30% in three weeks. This metric hit its lowest level since September 20, 2021. By comparison, Terra’s TVL is up 34% year-to-date, while Fantom network deposits are up 30%.
At least one positive aspect is that on April 5, Neon released an alpha version of the first cross-chain scaling solution, Solana Ethereum Virtual Machine. On April 7, Solana announced that it currently has over 1.6 million network addresses own an NFT.
The DeFi app stands out
To determine if the drop in TVL is a cause for concern, one should look at DApp’s usage metrics.
As data from DappRadar shows on April 8, the number of Solana network addresses interacting with decentralized applications increased by an average of 11%. Orca, a user-friendly decentralized exchange (DEX), saw the biggest increase, adding 153,290 users.
Even though Solana’s TVL is the hardest hit compared to similar smart contract platforms, network usage in the DeFi and NFT markets remains strong, as evidenced by Magic Eden’s 212,230 active addresses over the past few months. last 30 days.
The data suggests Solana investors need not worry about the recent correction. The Solana ecosystem continues to reach important milestones related to Ethereum compatibility and NFT market integration. As long as this remains the case, further price increases are likely.
The views and opinions expressed herein are solely those of authors and do not necessarily reflect the views of Cointelegraph. Every investment and every transaction involves risk. Research well before making a decision.
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